The Figure Given Below Shows the Demand Curves of Two

The figure given below shows the demand curves of two classes of buyers, for tickets to a football match.Figure 11.4
D₁: Demand curve of group 1
D₂: Demand curve of group 2
MR₁: Marginal revenue of group 1
MR₂: Marginal revenue of group 2
MC: Marginal cost
-Refer to Figure 11.4. What price must be charged from each group to maximize profits?

A) Both groups must be charged P₁ .
B) Both groups must be charged P₂ .
C) Group 1 must be charged P₁ and group 2 must be charged P₂.
D) Group 1 must be charged P₂ and group 2 must be charged P₁.
E) Both the groups must be charged a price that is equal to the marginal cost.

Correct Answer:

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